Public infrastructure districts are surging in popularity in the Wasatch Back, and across Utah, as developers look to raise money to get shovels in the ground.
PID proponents bill them as a way for governments to spur economic development without extra liabilities or direct subsidies.
But a Nov. 18 draft memo from the Office of the Utah State Auditor warns local governments that they could be “financially accountable” for the PIDs they establish.
The advisory states it was prompted by the bankruptcy of an unspecified “developer associated with a public infrastructure district.”
“Obviously, even though I think this comes out of the Wohali situation, this auditor alert was statewide,” interim Coalville attorney Craig Smith said at the Dec. 8 Coalville City Council meeting.
Wohali, a luxury golf course and residential resort in western Coalville, filed for Chapter 11 bankruptcy in August.
That’s because it allegedly defaulted on an almost $80 million loan. But it had also used a PID — created by the city of Coalville — to issue more than $30 million in bonds for infrastructure like sewer and water.
Read the full story at KPCW.org.
This article is published through the Utah News Collaborative, a partnership of news organizations in Utah that aim to inform readers across the state.
Donate to the newsroom now. The Salt Lake Tribune, Inc. is a 501(c)(3) public charity and contributions are tax deductible